It's Raining IPOs: Zynga Files for $1 Billion

The white-hot social gaming company filed with the SEC on Friday to raise up to $1 billion in an initial public offering

Zynga, the white-hot social gaming company, filed with the SEC on Friday to raise up to $1 billion in an initial public offering.

Zynga is the creator of popular online games, including Farmville, in which users pay for things like tractors and animals for their online farms. The company makes huge revenues from advertising as well.

The filing comes on the heels of other IPOs for new media companies with huge valuations, including Facebook's $70 billion filing and LinkedIn's successful IPO, which raised the company's value in a single trading day to more than $8 billion.

Zynga appears to be positioned for a very successful offering, claiming $90.6 million in profit on sales of $597 million in 2010, according to the SEC document. (Here's the filing.)

In the first three months of 2011, Zynga earned $11.8 million on sales of $235.4 million.

In the filing, Zynga said it has 60 million average daily users, and "more monthly active users on Facebook than the next 15 social game developers combined."

Social gaming has become a huge area of growth on the Internet, with Zynga the wunder-company leading the charge. Their other successful games include CityVille, Mafia Wars, Words with Friends and Zynga Poker.

A Zynga game has been the most popular game on Facebook every month since the beginning of 2009, and the company dominates in mobile as well.

The growth of the company, like a handful of Silicon Valley social start-ups, has been meteoric. It was founded just four years ago in April 2007 by Mark Pincus under the name Presidio Media LLC and changed its name to Zynga Inc. in November 2010.

Zynga is reportedly the name of Pincus's bulldog.